Improving air connectivity and a rising number of travelers are encouraging airport operators to renovate existing airports and add more retail space. Each year it has been noted that approximately 100,000sqm of new retail space at airports OPEN - from both new airports, airport expansion or reallocation of space, providing retailers with new store opening opportunities.
In 2018, Los Angeles International Airport completed the redevelopment of Terminal 1 and added 10,349 sq ft of dining and retail space. It attracted retailers such as MAC Cosmetics, New Stand, Brookstone and Kiehl’s among others. Bringing in new retail brands and leisure operators like Urth Caffe was essential for such a major airport, and is a necessary step for many other airports in the US to take given their terminals (domestic and international) lack the retail and leisure offer present in many European and APAC markets - causing the US to miss out on potential spend and increased dwell time.
As the airport experience and environment improves, and consumers become more demanding of the quality of retail at airports, retailers face intense competition to get prime space at lucrative terminals. Wait lists for vacant units allow airports to pick and choose their retail tenants and drive up the cost of leases, while underperforming tenants are quickly replaced. Retailers continue to work closely with airport operators extend existing stores or identify space for new formats.
The report “Airport Retailing Trends” provides an overview of the drivers & inhibitors, trends, strategies and initiatives in Airport Retailing.
- Expansion of space allocated to retail drives growth
- Walkthrough duty-free formats are rolled out
- Promotion via pop-up stores ? a growing retail strategy
- Arrivals duty free formats expand
- Affordable travel options aid airport retail sales growth
- Exclusive products and pre-launch collections aid sales
- Airports remain the sweet spot for luxury retailers
Reasons To Buy
- This report provides an overview of the drivers & inhibitors, trends, strategies and initiatives in Airport Retailing